Aug 6 (Reuters) - Most stock markets in the Middle East rebounded on Tuesday, clawing back some of their losses from the previous session when fears of a possible U.S. recession spooked investors, as comments from the Federal Reserve officials soothed their nerves.
San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is "extremely important" for the central bank to prevent the labour market from tipping into a downturn.
Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71% chance of such an outsized move.
The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), finished 1.5% higher, led by a 9.9% rise in aluminium products manufacturer Al Taiseer Group (4143.SE).
Elsewhere, oil giant Saudi Aramco (2222.SE), rose 1.5%, after reporting a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.
Dubai's main share index (.DFMGI), jumped 2.3%, a day after falling more than 4%, with top lender Emirates NBD (ENBD.DU), gaining 3.3%.
Wall Street's main indexes ended sharply lower on Monday as U.S. recession worries shook global markets and drove investors out of risky assets.
In Abu Dhabi, the index (.FTFADGI), gained 1.2%, driven by a 2.1% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
The Qatari benchmark (.QSI), however, eased 0.1%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30), closed 1.3% higher.
Egypt's fuel subsidies saw a 31% annual increase in the 2023/24 financial year, reaching 165 billion pounds ($3.35 billion), while food subsidies reached 133 billion pounds, a 10% year-on-year increase, Finance Minister Ahmed Kouchouk said on Tuesday.
SAUDI ARABIA
(.TASI) rose 1.1% to 9,473
ABU DHABI
(.FTFADGI) rose 1.2% to 9,084
DUBAI
(.DFMGI) gained 2.3% to 4,137
QATAR
(.QSI) lost 0.1% to 10,049
EGYPT
(.EGX30) lost 1.1% to 11,337
BAHRAIN
(.BAX) eased 0.1% to 1,930
OMAN
(.MSX30) advanced 1% to 3,697
KUWAIT
(.BKP) added 1.1% to 7,625
($1 = 3.7545 riyals)
Reporting by Ateeq Shariff in Bengaluru; Editing by Vijay Kishore
